UNDERSTANDING COMMON INSURANCE MYTHS

We get it—sometimes it’s challenging to separate insurance truth from insurance plan fiction. For example, did you develop up thinking that automobile insurance plan expenses extra if you pressure a purple car? What about if you stay in an apartment—does your landlord’s insurance coverage cover your stuff?

Let’s bust these frequent insurance myths and uncover the truth!

Myth 1: If you purchase a purple car, you’ll pay greater for vehicle insurance.
Busted! The shade of your automobile has absolutely no bearing on your automobile insurance premium. Rather, make, model and security facets are section of what determines what you’ll pay. Other factors—including deposit history, zip code and discounts—are also taken into consideration. So, go ahead, buy the red car!

Myth 2: If your automobile is damaged in an accident, insurance will constantly cover a condominium car.
Busted! Rental repayment coverage does not mechanically practice after an accident. As an optional coverage, it need to be bought separately. A common misconception is that auto insurance plan automatically covers the price of a alternative condo car. In reality, you need to select this coverage and practice it to your auto policy.

Myth 3: If your vehicle is totaled in an accident, you’re off the hook for vehicle payments.
Busted! Cars’ values depreciate rapidly and your car can now and again be really worth less than what you owe on it. Fortunately, there’s a nifty insurance kind known as loan/lease gap insurance that will pay off the balance of your car mortgage in the event your car is totaled and you owe extra than what it’s worth.


Myth 4: Your landlord’s insurance policy covers your stuff.
Busted! While the constructing owner’s insurance plan policy should cowl the structure, typically, you’ll need renter’s insurance plan to cowl your private belongings. For example, if there is a fire, your landlord’s insurance plan would help cowl structural damage and your renter’s coverage would assist you change personal belongings that are lost or damaged.

Myth 5: Homeowner’s insurance solely desires to cowl the market price of your home.
Busted! The value to definitely rebuild your home is generally tons extra than its market value. You’ll need to consider today’s development and labor costs when wondering about homeowner’s insurance.

Myth 6: Floods are included below a homeowner’s policy.
Busted! Flood insurance plan is separate from homeowner’s insurance and you’re required to lift it if you live in a flood zone and have a mortgage. Even if your house isn’t in a flood zone, as special by using the Federal Emergency Management Agency (FEMA), however the vicinity is susceptible to flooding, it may additionally be a true thinking to seem into flood insurance. Either way, your homeowner’s insurance will now not cover damage due to a flood. (FEMA has a slim definition of a flood, which you can discover here. This does no longer include, for example, a sump pump failure. For that, think about including a water backup endorsement to your home insurance plan policy.)

Myth 7: If your historical stuff is destroyed, you get manufacturer new stuff.
Busted! There is a difference between Actual Cash Value and Replacement Cost Value when it comes to replacing contents at some stage in a claim. If your 10-year-old tv is destroyed in a storm, for example, you will want to have Replacement Cost coverage to be capable to cowl the fee of buying a new one. Otherwise, Actual Cash Value will cowl what the tv used to be worth, used, on the day it was once destroyed.

Myth 8: You will always be paid the stated fee for your “scheduled” items.
Busted! If you have a excessive value personal property object (say jewelry) and “schedule” it with a noted price of $10k and it’s misplaced or stolen, you may also only be covered for the modern Replacement Cost Value up to the stated value. Think of the noted value as the restrict as a substitute of a assured greenback figure.

Myth 9: Your personal auto insurance covers you the complete time you’re driving for a ridesharing service.
Busted! There’s a duration when your private auto insurance assessments out before the rideshare company’s insurance tests in. Let’s say you’re cruising around, now not doing a lot when you decide now is a suitable time to make a few extra bucks, so you flip on your ridesharing app. From the time you turn it on and are waiting for a ride request till the time you receive the request and are on your way to pick up a passenger, you might also be underinsured. Different ridesharing organizations have exclusive coverages for the duration of this period, so a specific rideshare gap endorsement may want to help you out.

Myth 10: You don’t need an insurance plan agent.
Busted! An insurance plan agent can assist information you so that you buy the pleasant insurance for your unique needs. You can discover a local impartial agent who offers Grange Insurance with our Find an Agent on-line tool.

This article is for data purposes only. For specific insurance details, continually refer to your policy. If the coverage coverage descriptions in this article battle with the language in the policy, the language in the coverage applies.

UNDERSTANDING COMMON INSURANCE MYTHS UNDERSTANDING COMMON INSURANCE MYTHS Reviewed by Ramso on August 29, 2019 Rating: 5

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